Technology spillovers are an important gain of host country from FDI. This article has a deep research in the theory of technology spillovers, and set up a model to examine the conditions of spillovers.
On the basis of summarizing correlative theories, the paper has analyzed the technical spillover effect of MNC’s direct investment in auto line, combined with the characteristic of Chinese FDI. In the process of analysis, my study has investigated the technical spillover effect from the view of whole auto line. The study shows that the technical spillover effect has accelerated the improvement of the technology level of Chinese auto industry, and driven the development of correlative industries. The result of econometric regression also displays that the positive effect of FDI on the whole auto line should be affirmed.
Finally, on the basis of the former theoretic analysis and empirical test, the paper has put forward some material suggestions, aiming at the factors that affect the technical spillover effect of MNC’s.